- The Department of Justice reached a truce with Facebook parent Meta Platforms Inc (NASDAQ:META) for discriminatory advertising, violating the Fair Housing Act (FHA).
- The proposed agreement resolved a lawsuit alleging Meta’s housing advertising system allegedly discriminated against Facebook users based on their race, color, gender, and others. The settlement is pending court approval.
- The complaint also alleged Meta of using algorithms in determining housing ads which partly relied on characteristics protected under the FHA.
- The lawsuit marks DOJ’s first case challenging algorithmic bias under the Fair Housing Act.
- Under the settlement, Meta will stop using an advertising tool for housing ads or a “Special Ad Audience” tool that allegedly relied on a discriminatory algorithm.
- Meta also will develop a new system to address racial and other disparities caused by its algorithms in its ad delivery system for housing ads. The system will be subject to DOJ approval and court oversight.
- This settlement marks the first time Meta will be subject to court oversight for its ad targeting and delivery system.
- Recently France’s antitrust watchdog body ratified Facebook owner Meta’s obligations regarding the French online advertising sector.
- Price Action: META shares traded higher by 0.32% at $157.56 on the last check Wednesday.
Cannabis software company Akerna Corp. (NASDAQ: KERN) reported its unaudited financial results Monday for the quarter ended September 30, with software revenue spiking 37% year-over-year to $4.6 million.